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Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-3.39 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -3.39 suggests that the company is not a manipulator.

PAM' s 10-Year Beneish M-Score Range
Min: -6.24   Max: 2.81
Current: -3.39

-6.24
2.81

During the past 11 years, the highest Beneish M-Score of Pampa Energia SA was 2.81. The lowest was -6.24. And the median was -2.62.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 2.1307+0.528 * -0.9887+0.404 * 0.5716+0.892 * 0.8096+0.115 * 1.0303
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.7104+4.679 * -0.0736-0.327 * 1.2879
=-3.39

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $305.1 Mil.
Revenue was 175.202815177 + 168.453365973 + 175.10379437 + 139.337209302 = $658.1 Mil.
Gross Profit was 13.9247246022 + -7.25006119951 + -2.88164014688 + -9.23170134639 = $-5.4 Mil.
Total Current Assets was $466.5 Mil.
Total Assets was $1,613.6 Mil.
Property, Plant and Equipment(Net PPE) was $868.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $47.3 Mil.
Selling, General & Admin. Expense(SGA) was $151.1 Mil.
Total Current Liabilities was $660.0 Mil.
Long-Term Debt was $387.8 Mil.
Net Income was -47.7484700122 + -12.0635250918 + -19.6585067319 + 114.057160343 = $34.6 Mil.
Non Operating Income was -37.152876377 + -33.9654834761 + -0.336964504284 + -21.5285189718 = $-93.0 Mil.
Cash Flow from Operations was 61.1395348837 + 84.3674418605 + 61.1210526316 + 39.7363525092 = $246.4 Mil.
Accounts Receivable was $176.9 Mil.
Revenue was 170.403671971 + 192.544798042 + 230.668176255 + 219.248592411 = $812.9 Mil.
Gross Profit was -12.6397796818 + 5.72851897185 + 5.97307221542 + 7.57980416157 = $6.6 Mil.
Total Current Assets was $255.9 Mil.
Total Assets was $1,439.0 Mil.
Property, Plant and Equipment(Net PPE) was $748.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $42.1 Mil.
Selling, General & Admin. Expense(SGA) was $109.1 Mil.
Total Current Liabilities was $434.3 Mil.
Long-Term Debt was $291.2 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(305.114198286 / 658.097184823) / (176.878824969 / 812.865238678)
=0.46363091 / 0.2175992
=2.1307

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(-7.25006119951 / 812.865238678) / (13.9247246022 / 658.097184823)
=0.00817062 / -0.00826425
=-0.9887

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (466.490085679 + 868.783353733) / 1613.59547124) / (1 - (255.936352509 + 748.837209302) / 1439.02080783)
=0.17248563 / 0.30176579
=0.5716

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=658.097184823 / 812.865238678
=0.8096

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(42.0700122399 / (42.0700122399 + 748.837209302)) / (47.2949816401 / (47.2949816401 + 868.783353733))
=0.0531921 / 0.05162766
=1.0303

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(151.112607099 / 658.097184823) / (109.124724602 / 812.865238678)
=0.2296205 / 0.13424701
=1.7104

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((387.787760098 + 660.040269278) / 1613.59547124) / ((291.23623011 + 434.345165239) / 1439.02080783)
=0.64937467 / 0.50421884
=1.2879

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(34.5866585067 - -92.9838433293 - 246.364381885) / 1613.59547124
=-0.0736

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -3.39 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun05Jun06Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.53990.53550.87671.08020.99551.8429
GMI 1.4851.0931.0541.83872.3609-1.0266
AQI 0.56111.08390.77042.14650.78030.5969
SGI 11.58482.71351.01981.42171.15050.7968
DEPI 0.82030.50331.08850.8211.06331.1461
SGAI 0.80580.88341.14781.09251.00281.7581
LVGI 1.04531.11490.93571.26571.15641.2517
TATA -0.0243-0.0633-0.0942-0.1359-0.1441-0.0778
M-score 6.50-1.67-3.08-1.88-2.44-3.68

Pampa Energia SA Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.81721.05440.59960.67430.99820.77491.78732.2361.83712.1307
GMI 1.53661.62411.61351.98322.465412.8615-6.3548-2.275-0.9915-0.9887
AQI 2.05531.95260.83692.00110.78030.90210.68180.76010.59690.5716
SGI 1.59951.50011.52531.48261.14741.12410.95290.84830.79930.8096
DEPI 1.30261.66061.8551.33791.52480.91770.82120.78970.79931.0303
SGAI 1.07411.22551.05491.04951.04231.05031.37161.51461.73051.7104
LVGI 1.15431.22681.11821.04421.15641.14771.15581.2291.25171.2879
TATA -0.0905-0.097-0.1119-0.1084-0.1217-0.1644-0.0629-0.086-0.0783-0.0736
M-score -1.86-1.76-2.60-1.92-2.232.81-6.24-3.89-3.70-3.39
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